AHPAS PROTECT Case Studies and FAQ
Business Legal Expense Insurance
Legal expense insurance is an important risk management tool for SMEs and Sole Traders. It provides
affordable access to legal advice and representation when a business might otherwise be deterred from
exercising its legal rights. This includes pursuit and defence costs.
The legal system can be complex and expensive. Just an hour of a lawyer’s time can cost hundreds of
dollars and going to court could cost thousands. It may make financial sense for a business to protect its
organisation and legal position for these types of circumstances.
Through AHPAS membership, ARAG and ABC2 Solutions will be able to provide a mass discount for your needs.
You do not have to be an AHPAS member to access this package, however your insurance premiums will be varied as AHPAS members have access to the discounted rates provided through the underwriters.
If you wish to take on the insurance only and not the AHPAS membership, please feel free to email us on firstname.lastname@example.org so we can forward your inquiries to the underwriters.
Why ARAG through AHPAS membership?
Legal costs for Pursuit and Defence – If legal action is necessary, ARAG's legal expense insurance products are there to cover the legal costs and expenses of events covered under the policy. Legal Expense Insurance is a Before the Event cover.
Legal Information Helpline – ARAG customers have access to our confidential legal information helpline for general information for an initial 15 minute consultation, between 9am and 5pm AEST on weekdays.
Document Centre –ARAG customers have access to many helpful legal documents via ARAG’s Document Centre. All legal documents have been drafted by lawyers and can be easily customised.
Online Quoting System -ARAG provides its Broker Partners access to an online portal to quote and bind.
Local team - Underwriting, Sales and Claims experts on the ground.
Tailored - To schemes, industry groups, employee and membership benefits.
About ARAG Australia
|Summary of Cover
|Business Comfort (1-9)
|If a current, former or prospective employee brings an unfair dismissal case against the business.
|2. Employee Protection
|Where civil proceedings are brought against an Employee for unlawful discrimination.
|3. Employment Restrictive Covenants
|A dispute with a former employee over the enforcement of a restrictive employment covenant.
|4. Criminal Prosecution Defence
|If the business faces a work health & safety investigation with a threat to prosecute.
|5. Property and goods
|If someone damages, trespasses on or causes a nuisance to the business premises.
|6. Identity Theft
|A dispute arising from the use of Your personal or business information without Your permission to commit fraud or other crimes.
|7. Statutory Licence
|An appeal against a decision to revoke, refuse to renew or cancel a business licence.
|8. Compliance & Regulation
|If the business faces formal investigation, regulatory or disciplinary proceedings by a professional, regulatory or disciplinary authority.
|9. Tax Protection
|If the business is subject to a tax audit by the ATO.
|Business Elite (1-11)
|10. Contract disputes
|If the business is subject to a dispute with a supplier or client over a contract.
|11. Tenancy disputes
|If the business is subject to a dispute with a landlord over a tenancy matter.
For a full description of policy cover, conditions and exclusions, please read the policy wording. Limits of Indemnity apply to the product. Contractual and
Tenancy disputes (Business Elite) are an additional module to Business Comfort.
What happens if…
Jane and her employee have agreed to end Jane’s employment by mutual agreement. The agreement included a restrictive covenant that prevented the employee from contacting Jane’s customers, suppliers and other contacts or ‘poaching’ their business or employees. There is also a confidentiality clause prohibiting use of confidential information obtained during the employment period. However, some time after the employee left and moved into a different industry, Jane found out from former clients that they had received a copy of Jane’s client list as well as details of Jane’s suppliers from the former employee and now dealt directly with Jane’s suppliers and were going into business distributing Jane’s suppliers’ products. ARAG appoints lawyers to pursue damages from the former employee. After the commencement of legal proceedings, a damages settlement was negotiated with contribution to the legal costs paid to ARAG by the former employee. ARAG paid all legal costs incurred that were not recovered from the former employee other than the excess that Jane contributed.
A worker was injured during the course of his employment when a contractor operating a forklift ran into the worker. The worker was hospitalised and the employer reported the incident to SafeWork. SafeWork undertook investigations. ARAG appointed lawyers to assist the business with SafeWork investigations including production of documents and interviews of employees. SafeWork determined not to prosecute the business and prosecuted the subcontractor for a breach of work health and safety legislation. ARAG paid all legal costs incurred in the investigation, as the insured had a nil excess.
A Council owned land adjoining a business’ premises. A large pine tree was on Council land. The business had not insured its property. The tree roots caused damage to drains, footpaths and driveways on the business’ premises. The business wrote to Council claiming rectification costs and the Council declined to compensate ABC. ARAG appointed lawyers to bring a claim for damages in nuisance against the Council and after commencement of proceedings, the lawyers negotiated payment of compensation and a contribution towards legal costs. ARAG attended to the payment of the legal costs that were in excess of the contribution to legal costs recovered.
Disclaimer: The insurer of this ARAG Legal Expense Insurance product is HDI Global Specialty SE – Australia (ABN 58 129 395 544, AFS Licence number 458776) (Insurer). ARAG Services Australia Pty Ltd (ABN 14 627 823 198, AFS Licence number 513547) has been granted delegated authority by the Insurer to enter into, vary or cancel policies and handle claims for ARAG Legal Expense Insurance products on the Insurer’s behalf. All enquiries should be addressed to ARAG. Any advice contained in this brochure is general advice only and has been prepared without considering your individual objectives, financial situation or needs. Before purchasing or renewing a product we recommend that you consider if it is suitable for your circumstance and read the policy terms and conditions.